Following is a February transaction for a company. Calculate the amount of revenue to recognize in February. In February the company received $30,000 cash from customers for services; $20,000 was provided this month and $10,000 is to be provided next month 7. Accrual basis revenue: $ 8. Cash basis revenue: $
Q: below are selected transactions completed by Ridge Company during March of the current year. Mar. 5…
A: Journal of Ridge : Revenue Journal Date of March Account Debited Ref Amount credited to…
Q: hat is the amount of working capital at the end of January? A service enterprise's working capital…
A: Working capital is the amount of current assets in excess of current liabilities. Formula: Working…
Q: During December, Camp McDavid Inc. purchased $5,000 of supplies for use in its business. At the end…
A: Accrual accounting is one of an accounting method in which all transactions it may be revenue or…
Q: Bentong Consultancy has provided the following information regarding cash payments to its employees…
A: According to the accrual concept, expenses are recorded when these are incurred and not when these…
Q: Bearcat Construction begins operations in March and has the following transactions. March 1 Issue…
A: Journal entry: Journal is the book of original entry whereby all the financial transactions are…
Q: Following is a February transaction for a company. Calculate the amount of expense to recognize in…
A: The cash basis accounting system state that expenses should be recognized when the amount is paid,…
Q: On December 31, Hawkin’s records show the following accounts. Use this information to prepare a…
A: The Income Statement for the given data is prepared below:
Q: Transactions made by Ivanhoe Company for the month of March are shown below. 1. The company…
A: Step 1: The tabular analysis of the transactions is as follows:
Q: According to the revenue recognition principle, revenues should be recognized when or as the company…
A: Revenue recognition principle of accounting says that revenues should only be recognised when…
Q: For each transaction below, calculate the amount of revenue to be recognized in June using…
A: As per cash basis of accounting, we should record the transaction only when corresponding cash is…
Q: Company A was incorporated on January 1, 20X0 with an initial cash 35000. During the first month of…
A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: The balance sheet represents the financial position of the business with assets and liabilities on a…
Q: Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the…
A: 1. Accounting Equation - Accounting Equation is calculated using following equation - Assets =…
Q: Transactions made by Ivanhoe Company for the month of March are shown below. 1. The company…
A: The basic Accounting Equation is Assets = Equity + LiabilitiesAssets are the resources owned by the…
Q: Transactions made by Marigold Corp., a law firm, for the month of March are shown below. The company…
A: Accounting Equation is statement showing effects of financial transaction on basic equation on…
Q: For each transaction below, calculate the amount of revenue to be recognized in the current period…
A: Accrual accounting: The method of accounting which recognizes revenues when it is earned though not…
Q: Transaction: On August 1, the business, Design Thinking Ltd, provided consulting services for a…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: From the following transactions for BlackJade Company, find the required balances for the month…
A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…
Q: Following is an extract of account balances of Aztec Moving Services as of December 31, after the…
A: Total assets at the end of the year = Accounts Receivable + Truck + Equipment + Cash
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: LAWSON CONSULTING Income Statement Amount Amount Revenue: Service Revenue $…
Q: A business has the following transactions in a month. Journalise each of the transactions. What is…
A: Journal entries recording is the first step in accounting process, in which atleast one account is…
Q: Determine the net income of a company for which of the following information is available for the…
A: Net income refers to an income which is left with a company or an individual after paying all the…
Q: Camrim Inc., experienced the following events in 2018, its first year of operation: Performed…
A: Rent for a period of 10 months $9310 × 10/12 = $7758.3333 That is from March 1 to December 31…
Q: At the end of the first month of operations for Juan's Service Company, the business had the…
A: A single-step income statement is the income statement that shows the sum of total revenue and total…
Q: On September 1, Year 1, Zelda Company collected $120,000 cash for services to be provided for one…
A: Given, Cash collected for the services to be provided in one year = $120,000 The fiscal year of the…
Q: From the following transactions for Casio Company, find the required balances for the month ended…
A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…
Q: Gomez Co. had the following transactions in the last two months of its year ended December 31.…
A:
Q: On December 1, Oren Marketing Company received $4,500 from a customer for a 2-month marketing plan…
A: Adjusting entries are the journal entries passed at the end of the accounting period to give effect…
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: Solution: Statement of owner's equity is one of major part of financial statements. This is prepared…
Q: Diamond, Inc. had the following transactions during June: Performed services for $6,000 on…
A: Journal Entries:-
Q: During the month of April, Riley Co. had cash receipts from customers of $71,100. Expenses totaled…
A: Under the accrual basis of accounting, transactions are recorded in books of accounts as and when…
Q: On April 1, Mary Henderson started Henderson Company. The company was organized as a corporation…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: The following account balances were taken from the books of ABC Company for the month of March.…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: SOLUTION OWNERS EQUITY REFERS TO THE OWNERS INVESTMENT IN AN ASSET AFTER ALL LIABILITIES HAVE BEEN…
Q: For each transaction below, calculate the amount of revenue to be recognized in the current period…
A: Here in this question we are require to calculate the revenue that needs to be recorded under…
Q: Listed below are selected transactions completed by Ridge Company during March of the current year.…
A: Revenue Journal - Revenue Journal includes revenue-related journal and recorded. Cash Receipt…
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: A Balance sheet is a part of financial statement that provides summary on Company's assets,…
Q: Helmut Corporation began the year with salaries payable of 2,400. During the year, the company…
A: Total Salaries payable = 2,400 + 6,500 = 8,900 Ending Salaries payable = 2,100
Q: The following information is taken from the accrual accounting records of Kroger Sales Company:a.…
A: Cash basis accounting records income and expense when it is paid whereas accrual basis accounting…
Q: Analyze the following transactions that took place in January. Determine the amount of revenue…
A: The following posting is analyzed for its correctness.
Q: Transactions made by Pina Colada Corp., a law firm, for the month of March are shown below. 1.…
A: An accounting equation refers to a mathematical representation of the transaction. It indicates that…
Q: Lawson Consulting, which began operations on December 1, had the following accounts and amounts on…
A: The statement of owner's equity is a financial document that examines how a farmer's net worth (or…
Q: August, the entity completed the following transactions: Aug.2 Paid rent for August, P6,500 3…
A: The ledgers are prepared by posting transactions from journal.
Q: For each of the transactions, if an expense is to be recognized in January, indicate the amount.…
A: Accrual basis implies that the expenses and revenues are recognized as and when it's due…
Q: For each transaction below, calculate the amount of expense to be recognized in March using…
A: The revenue and expenses are recognised as and when are incurred without considering cash…
Q: ABC Company had the following transactions during the month. Whal a. On the first of the month, paid…
A: A business expense is the cost of operations incurred in order to generate revenue. As the old adage…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?
- FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: a.Prepare an income statement. b.Compare your income statement with the income statement that is available at the FedEx Corporation Web site, (http://investors.fedex.com). Click on Annual Report and Download Annual Report. What similarities and differences do you see?On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501 (Rent Expense). e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012 (Catering Income). g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307 (Catering Income). i. Received and paid the heating bill, 248, Ck. No. 504 (Utilities Expense). j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128 (Gas and Oil Expense). k. Sold catering services for cash for the remainder of the month, 2,649 (Catering Income). l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506 (Salary Expense). Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Journal entries and trial balance On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month: a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, 17,500. b. Purchased supplies on account, 2,300. c. Earned sales commissions, receiving cash, 13,300. d. Paid rent on office and equipment for the month, 3,000. e. Paid creditor on account, 1,150. f. Paid dividends, 1,800. g. Paid automobile expenses (including rental charge) for month, 1,500, and miscellaneous expenses, 400. h. Paid office salaries, 2,800. i. Determined that the cost of supplies used was 1,050. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash, Supplies, Accounts Payable, Common Stock, Dividends, Sales Commissions, Rent Expense, Office Salaries Expense, Automobile Expense, Supplies Expense, Miscellaneous Expense. Journal entry explanations may be omitted. 2. Prepare T accounts, using the account titles in (1). Post the journal entries to these accounts, placing the appropriate letter to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of August 31, 20Y7. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for August. 5. Determine the increase or decrease in retained earnings for August.
- Journal Entries Overnight Delivery Inc. is incorporated on February 1 and enters into the following transactions during its first month of operations: February 15: Received $8,000 cash from customer accounts. February 26: Provided $16,800 of services on account during the month. February 27: Received a $3,400 bill from the local service station for gas and oil used during February. February 28: Paid $400 for wages earned by employees for the month. February 28: Paid $3,230 for February advertising. February 28: Declared and paid $2,000 cash dividends to stockholders. Required Prepare journal entries on the books of Overnight to record the transactions entered into during February. Explain why you agree or disagree with the following: The transactions on February 28 all represent expenses for the month of February because cash was paid. The transaction on February 27 does not represent an expense in February because cash has not yet been paid.Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business sets up a line of credit with a supplier. The company purchases $10,000 worth of equipment on credit. Terms of purchase are 5/10, n/30. B. A customer purchases a watering hose for $25. The sales tax rate is 5%. C. Customers pay in advance for season tickets to a soccer game. There are fourteen customers, each paying $250 per season ticket. Each customer purchased two season tickets. D. A company issues 2,000 shares of its common stock with a price per share of $15.If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
- The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001. e. Sold services for cash for the first half of the month, 6,927. f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004. i. Received a bill for gas and oil for the truck, 218. j. Sold services on account, 3,603. k. Sold services for cash for the remainder of the month, 4,612. l. Paid wages to the employees, 3,958, Ck. Nos. 30053007. m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. Record the transactions and the balance after each transaction 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?